COGM and COGS
Selected data concerning the past year’s operations of the Karl Enterprises are as follows:

Selling and administrative expenses $75,000
Direct materials used. 265,000
Direct labor (25,000 hours) 300,000
Factory overhead application rate 20 per DLH

Inventories
Beginning Ending
Direct materials $40,000 $45,000
Work in process. 95,000 90,000
Finished goods. 35,000 25,000

Required:
(a) Prepare a statement of the cost of goods manufactured.
(b) Determine the value of COGS (show your work).

Quote:

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Originally Posted by tamimi

COGM and COGS
Selected data concerning the past year’s operations of the Karl Enterprises are as follows:

Selling and administrative expenses $75,000
Direct materials used. 265,000
Direct labor (25,000 hours) 300,000
Factory overhead application rate 20 per DLH

Inventories
Beginning Ending
Direct materials $40,000 $45,000
Work in process. 95,000 90,000
Finished goods. 35,000 25,000

Required:
(a) Prepare a statement of the cost of goods manufactured.
(b) Determine the value of COGS (show your work).

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Hi, tamimi!

I'm not sure what your question is here...

Are you looking for someone to do the work for you, or for someone to come along and teach you how to come up with the correct responses yourself, please?

If the former is true, please click on the following link to read the announcement there.

https://www.askmehelpdesk.com/financ...-b-u-font.html

Thanks!

A statement of COGM is very difficult to give hints on or describe in a forum situation like this, but there's an example of one here:
Principles of Accounting Chapter 17

If you have any part of it already done and post it, we can at least give you some guidance from there.

Opening Inventory of Raw Material 40,000
Add: Raw material purchased xxx
Transportation/Freight in xxx
Less: Purchase Return (xxx)
Purchase discount (xxx)
=Raw material Available for use xxx xxx
Less: Closing Inventory of Raw material (xxx)
Direct raw material consumed/used 265,000
Add:Direct Labour 300,000
=Prime cost =565,000
Add: Factory Overheads (FOH) 500,000
=Manufacturing Cost for the period =1,065,000
Add: Opening WIP 95,000
=Total Cost of WIP =1,160,000
Less: Closing WIP (90,000)
=COGM =1,070,000


COGS Statement
Opening Balance of Finished Goods 35,000
Add: COGM 1,070,000
=Finished Goods available for Sale =1,105,000
Less: Closing Inventory of Finished Goods (25,000)
=COGS =1,080,000